Which economic theory assumes individuals will use past values of inflation to predict the possible expected...

Which economic theory assumes individuals will use past values of inflation to predict the possible expected future values of inflation?

rational expectations

Keynesian economics

adaptive expectations

Expert Solution

Option 3) is correct answer-adaptive expectations theory assumes individuals will use past values of inflation to predict the possible expected future values of inflation.

Rahul Sunny answered 9 months ago

Use economic theory to predict when the world will run out of oil.

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Which economic theory assumes individuals will use past values of inflation to predict the possible expected...

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